Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes that the six-month forward price is 45.20 and the six-month futures price is 45.10. This difference most likely suggests that for this commodity: futures prices are negatively correlated with interest rates.
This is further explained below.
<h3>What are interest rates?</h3>
Generally, the fraction of a loan that is charged as interest to the borrower is often stated as a yearly percentage of the loan outstanding.
"lower interest rates encourage people to spend money on house upgrades"
In conclusion, Bea Moran would want to construct a long derivatives position in a commodity that she will need to buy in a little over half a year's time. Moran notes that the price of the six-month forward contract is now at 45.20, while the price of the six-month futures contract is currently at 45.10. Because of this disparity, it is quite probable that the prices of futures contracts for this commodity have an inverse relationship with interest rates.
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Answer:
The correct answer is b) cash cows
Explanation:
The term Cash cows refers to the product lines with a high relative market share as the result of past and heavy investment but in low-growth markets. They, usually, create excess funds available that can be used to carry or support other product lines.
The answer is E-verify.
The E-verify system is a free online service that allows employers to check the legal status of their employees.
What is E-verify system?
- E-Verify may be a Joined together States Division of Country Security (DHS) site that permits businesses to decide the qualification of their workers, both U.S. and remote citizens, to work within the Joined together States.
- Note that no government law mandates utilize of E-Verify.E-Verify was initially built up in 1996 as the Fundamental Pilot Program to prevent undocumented laborers and other individuals who have damaged migration laws from getting work wrongfully within the Joined together States.
- In Eminent 2007, DHS begun requiring all government temporary workers and merchants to utilize E-Verify.
- The Internet-based program is free and kept up by the Joined together States government.
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Answer:Double-entry bookkeeping, in accounting, is a system of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry has two equal and corresponding sides known as debit and credit. The left-hand side is debit and right-hand side is credit.
Explanation:
Answer and Explanation:
The adjusting entry is as follows
Interest receivable Dr ($18,600 × 10% × 42 days ÷ 360 days) $217
To Interest revenue $217
(being the interest revenue is recorded)
Here the interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue
The 42 days are calculated from Nov 19 to Dec 31
